Given the uncertain macroeconomic conditions, most brokerages have turned slightly cautious on the pace of growth in State Bank of India's (SBI's) earnings going ahead. While they don't see any significant risk arising for now, its sheer balance sheet size and systematic importance has nudged them to cut earnings estimates for fiscal year 2023-24 (FY24) and 2024-25 (FY25) up to 5 per cent. India's largest state-owned bank, on Thursday, reported standalone net profit of Rs 16,694.51 crore for Q4FY23.
HDFC Bank Q1FY24 results analysis: Shares of HDFC Bank, the world's seventh largest financial entity, have advanced 2 per cent in two days, as against 1 per cent rise in the benchmark S&P BSE Sensex, after the lender reported its April-June quarter (Q1) results for financial year 2023-24 (FY24) on July 17. The S&P BSE Bankex index, meanwhile, has gained 1.3 per cent. While the near-term stock performance may remain sideways due to merger-related hiccups, analysts remain bullish on the stock's long-term prospects.
The stock of State Bank of India (SBI) may re-rate soon, believe analysts, if the lender manages to safeguard its net interest margin (NIM) going ahead. This, along with controlled credit costs, should aid the outlook of the stock which has been underperforming the markets for some time now. "We believe delivery of growth on guided lines, sustenance of NIMs near current levels, and controlled asset quality parameters aiding controlled credit costs should lead to strong profitability and drive re-rating of the stock," said analysts at JM Financial.
Invest in quality companies that make profits, advises stock market expert and rediffGURU Samraat Jadhav.
This will be the lender's first result after its merger with HDFC Ltd, effective from July 1, and will keep analysts glued to the management's earnings growth guidance for the merged financial behemoth.
The banking sector emerged as an outlier when the rest of India Inc witnessed a slowdown in earnings in FY23. The combined net profit of listed public and private sector banks was up 39.4 per cent year-on-year (YoY) last financial year and their share in India's gross value added (GVA) or gross domestic product (GDP) at factor cost rose to a record high of nearly 1 per cent up, from 0.8 per cent a year ago. Listed banks' combined net profit grew to Rs 2.36 trillion in FY23, from Rs 1.69 trillion a year ago. In comparison, India GVA at current prices was up 15.2 per cent YoY at Rs 247 trillion in FY23; it was around Rs 214 trillion a year ago.
With the merger between HDFC Bank and HDFC Ltd complete, analysts said the next key monitorable for the Street would be successful resolution of merger-related hiccups, including employee-related churn and roll out of complete banking services across branches. At the bourses, they expect the stock to perform in-line with the benchmark indices in the near-term. "There's usually an initial period of consolidation after a merger as the entities work towards integration.
The health of Indian banks continued to improve in 2021-22 with their balance sheet growing at double digits after a gap of seven years and their asset quality and capital position bettering, the Reserve Bank of India (RBI) said in its annual report on trend and progress of banking in India. At the same time, the banking regulator flagged the issue of slippages from restructured accounts. "Going forward, it is imperative that banks ensure due diligence and robust credit appraisal to limit credit risk," the report said.
Shoorveer revolves around the done-to-death India-Pakistan rivalry, which is no longer engaging, observes Namrata Thakker.
Shares of Yes Bank may face selling pressure as the Reserve Bank-mandated three-year lock-in period for individual investors and exchange-traded funds is ending on Monday, according to analysts. The analysts expect distress on the bank counter on Monday as they expect investors, primarily the nine banks led by State Bank, which picked up almost 49 per cent of its stocks in March 2020 for Rs 10 per share -- at a premium of Rs 8 on the face value as part of the RBI bailout, making an exit. Exchange-traded funds are also likely to press the exit button.
More than 1,200 people are now known to have died in the quake-tsunami that smashed into Sulawesi, Indonesia said on Tuesday. The 7.5-magnitude quake struck just off the central island of Sulawesi, setting off a tsunami that engulfed the coastal city of Palu. People there are growing increasingly desperate for food, fuel and water. Almost 200,000 people are in need of urgent help, the United Nations says, among them thousands of children.
A team of refugees that will compete at this year's Rio de Janeiro Olympics could number as many as 10 athletes, International Olympic Committee (IOC) President Thomas Bach on Wednesday.
RBI may be inclined to impose severe restrictions on lending in the coming quarters.
We'll need to wait a couple of years to see how many restructured loans turn bad and whether some banks fall victim to their obsession for growth, explains Tamal Bandyopadhyay.
Axis Bank's acquisition of Citibank's consumer finance business for Rs 12,325 crore - the second biggest deal in the Indian banking sector - is seen as a good deal at a good price. The acquisition enables Axis Bank to close the gap with competition in some key segments such as credit cards. At the same time, there are some key issues that are crucial for the deal's success, apart from the fact that it will take some time for Axis to reap the full harvest of its investment.
As many as 3,50,000 people have been rendered homeless in the region.
The European Union Tuesday praised the rapid development spree in Bihar within a short period of time
Uttar Pradesh Chief Minister Akhilesh Yadav devoted his Sunday to spelling out the virtues of bicycle -- that also happens to be the ruling Samajwadi Party symbol.
The plan, being put together by the transport and tourism departments, could just be a shot in the arm for the cash-strapped CTC.
Here are some beauties that will be seen on Indian roads this year and a few old ones that went under the knife, so to say...
Individual banks should break away from the industry pact and have their own settlements with the unions, recommends Tamal Bandyopadhyay.
Here is a list of 10 popular carmakers who have left their mark on the roads of many nations.
The prime minister's comments come close on heels of the developed countries threatening to cut vital aid to the developing nations if they do not back the deal agreed at the UN climate summit in Copenhagen.
A few state-owned banks such as IDBI Bank, Union Bank, Indian Overseas Bank have announced results for FY14.
'It's a toss-up between a fire sale of equity or merger with a strong bank,' points out Tamal Bandyopadhyay.
Finance Minister P Chidambaram held informal consultations on Wednesday on possible candidates for the Reserve Bank deputy governor's post.
Usain Bolt enthralled a capacity crowd in Brussels with his showmanship and stadium record on Friday, but said later he was missing Jamaica and seeking some respite.
Among the bank groups, under the baseline scenario, public sector banks' gross NPA ratios may increase to 13.2 per cent by September 2020 from 12.7 per cent in September 2019.
Legendary Telugu actor Akkineni Nageswara Rao passed away at Care Hospital in Hyderabad early on Wednesday at around 2 am. He was 91, and was under going cancer treatment.
After initial teething troubles, the FM channels -- Radio Mango of Malayala Manorama, Club FM of Mathrubhumi, Surya's SFM, Asianet's Best FM, Times of India's Radio Mirchi and Big FM of Reliance -- are picking up momentum, with old and new songs, humour and loads of entertainment. Listeners are even given tips about congested roads which have to be avoided and weather updates on a daily basis.
Symbiosis School of Economics (SSE) opens admissions to the BSc Ecnomics course (3-year full-time programme).
In a filing to stock exchanges, BoI said Reserve Bank of India has placed it under Prompt Corrective Action Framework, consequent to the onsite inspection under the risk based supervision model carried out for the year ended March 2017.
About 15 people have been feared killed in the mishap.
The ultras avoided better-known institutions for fear of being noticed and the strict enrollment process and settled for lesser popular ones instead.
India's United Breweries has suggested close distribution ties with Heineken following the takeover offer by the Dutch brewer and Carlsberg for Scottish & Newcastle, which owns a stake in UB.
It has been a decade since Shyam Srinivasan took over as managing director and chief executive officer at Federal Bank. He wants to ramp up the bank's unsecured lending going ahead even as it homes into the space vacated by competition. Reappointed for a fresh three-year term as the bank's helmsman, he spoke to Hamsini Karthik on the plot ahead.
AIBOC in a letter to the Prime Minister, has said the government should not expect the banking fraternity to "join the political campaign of #MainBhiChowkidar" unless issues related to merger of banks, salary revision and staff recruitment, among others, are addressed.
Vodafone Idea, the promoter of Aditya Bira Idea Payments Bank, said in a notification to the exchanges late on Friday that the board of the bank approved winding up the business, subject to approval from the Reserve Bank of India.
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